Ann: RCR Prospectus - Entitlement Offer, page-55

The fact that SP has stayed above new issue price is because the institutions have not dumped them and made a quick 10%. Probably Macquarie has influence in this regard. It wouldn't amount to much volume once the market realised who was selling. So I discount the current SP as being a guide to future SP post retail issue.

What matters is the long term outlook for the business. There will be more bad news before bottom is found because the huge increase in accounts payable needs either an explanation or a quick reduction by way of lumpy revenue. Revenue and accounts payable should track each other otherwise creditors are being delayed and profit margins are vanishing.

Also, for a company with tiny borrowings it was instructive that banks would not finance them without a CR.

The rights issue had a cost of $11 million out of $100 million raised!!!

RCR needs to shrink to greatness. Too much sh!t, not enough fan.